Small- and medium-sized enterprises (SMEs) in Bangladesh have been growing for the preceding two decades in various ways. Even though these enterprises exert an important effect on the national economy of the country, they face certain challenges and suffer in quite a manner. To reduce the suffering and help deal with these unavoidable challenges, SME foundations in Bangladesh have been working a lot to assist these enterprises. Usually, the challenges are financial, regulatory, or innovation performance-related. Since the enterprises are focused on particular products and their manifestation and production, performing innovatively within these organizations becomes quite a constraint factor. In this paper, a qualitative method was applied with soft systems, where an innovation model was commenced to reduce the challenges and constraints of SMEs in Bangladesh. From the literature, 50 articles were analyzed, a content and thematic analysis was done, and eight main challenges were highlighted and finalized. On the other hand, a focus group discussion among 10 entrepreneurs in Bangladesh was done, where collected data were stored in the NVIVOMac tool, transcribed, and coded, and 55 open codes were identified. These open codes were transferred to 20 axial codes and 8 themes to construct a conceptual innovation model for SMEs in Bangladesh by applying soft systems techniques to connect the themes to each other.

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